Chairman Lee Hae-wook of DL Holdings (formerly Daelim Industrial) has been finally fined on charges of unfairly supporting his private company by mobilizing affiliate companies.
The Supreme Court’s Second Division (presided over by Justice Lee Dong-won) confirmed on Aug. 31 a lower court’s ruling that imposed a fine of 200 million won on Chairman Lee for violating the Monopoly Regulation and Fair Trade Act.
The corporations DL and Glad Hotel & Resort, which were indicted alongside him, were respectively confirmed fines of 50 million won and 30 million won.
The Supreme Court judged, “The lower court did not misunderstand the legal principles related to business opportunities that would significantly benefit the company in violation of the Fair Trade Act, unfair benefit provision, and the directives and involvement of special insiders.”
Chairman Lee was accused of unfairly profiting by transferring the trademark rights of the group hotel brand “Glad” to an affiliate company wholly owned by himself and his son and allowing another subsidiary to use it.
The appellate court found Chairman Lee guilty of providing business opportunities to a personal company and directing advantageous deals but Lee appealed against the decision.